Bluescope Steel (ASX:BSL) is set to commence a new on-market buy-back of up to $250 million.
The announcement forms part of the company's FY19 capital management program.
Bluescope aims to lift its net cash on the balance sheet to $200 to $400 million.
At its annual general meeting in Sydney last week Bluescope confirmed its guidance that underlying earnings before interest and tax for the first half of 2019 will be around 10 per cent higher than the second half of FY18.
Shares in Bluescope Steel (ASX:BSL) closed 0.63 per cent higher to $11.23 on Friday.